Lizzos New-Agey Strategy Could

Recovery is Weaker Than You ThinkSharon Zackfia Lindsey Grossman Accessories Business – William Blair Company: Had some questions. I think the gross margin is improving year-over-year if I rightly omitted anything it was “it’s kind of the best increase we’ve seen in nearly two years and I know you’ve said the product margin as positive. It seems like it’s been pretty positive so I’m not sure if it’s a mix shift or if there’s something else you’ve prepared for really well in July quarter that drives it? Then, secondly, in August I think the accessories were negative. If you could talk a little bit about what’s going on in the accessories market if that’s just a late back-to-school feature or help us understand a little about what’s going on in that kind of important part of the business? Richard M. Brooks – Managing Director: Thank you Sharon. Again you’re right about margin in Q2 so it’s been a very strong performance at the product margin level and there’s a lot of mix change involved there as it’s linked to that as markets switch around again and we’re going more towards apparel based business departments (indiscernible). Much of it is related to combining and again as you know our company is so diverse in terms of the variety of categories that we serve that I know this makes it difficult for everyone to understand and appreciate how complicated it is, but essentially there are two things going well here. Obviously, I think our customers are doing well in terms of pushing our margin forward and negotiating on price with our partners. I would also add that our inventory rates are in very good shape, in terms of inventory quality. I think we’re all feeling really good about our position and I think it’s indicative of the markdown rates and the types of promotions we do when we’re in that stronger position. Then you are right again last but not least there are some relative mix shifts towards our apparel.